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The Dannon Co. will reimburse consumers for up to $100 of Activia and DanActive yogurt purchases and change its marketing and labeling to settle a class-action lawsuit, they announced Friday. As part of the settlement Dannon will set up a fund of up to $35 million to reimburse qualified consumers for purchases.

The lawsuit, filed in 2008, alleges Dannon overstated the yogurt's health benefits. The company claims the products can strengthen the body's defenses or regulate digestion because of bacteria they contain.

White Plains, N.Y.-based Dannon denies any wrongdoing and said it settled the suit to avoid any further litigation and expense.